Estimating Spatial Consumer Price Indices Through Engel Curve Analysis

18 Pages Posted: 14 Mar 2011

See all articles by Dipankor Coondoo

Dipankor Coondoo

Indian Statistical Institute, New Delhi - Economic Research Unit

Amita Majumder

Indian Statistical Institute, Kolkata

Somnath Chattopadhyay

Indian Statistical Institute, Kolkata

Abstract

In this paper we propose a method of estimating spatial multilateral price index numbers from cross-section consumer expenditure data on different items using Engel curve analysis. The novelty of the procedure is that it overcomes the problem of data inadequacy, a problem that is shared by most of the developing countries. The procedure does not require item-specific price/unit value data and price index numbers can be calculated from consumer expenditure data grouped by per capita income/total consumer expenditure class in a situation where unit level data are not available. To illustrate the method, we use published state-specific data of the 50th round (1993-94) and 55th round (1999-2000) consumer expenditure surveys of India's National Sample Survey Organization (NSSO) and calculate the spatial consumer price index numbers for 15 major states of India, with All-India taken as base, separately for the rural and the urban sector for each round.

Suggested Citation

Coondoo, Dipankor and Majumder, Amita and Chattopadhyay, Somnath, Estimating Spatial Consumer Price Indices Through Engel Curve Analysis. Review of Income and Wealth, Vol. 57, No. 1, pp. 138-155, 2011, Available at SSRN: https://ssrn.com/abstract=1782511 or http://dx.doi.org/10.1111/j.1475-4991.2010.00382.x

Dipankor Coondoo (Contact Author)

Indian Statistical Institute, New Delhi - Economic Research Unit ( email )

203 B. T. Road
Calcutta, 700 035
India

Amita Majumder

Indian Statistical Institute, Kolkata ( email )

203 B. T. Road
Kolkata, 700 035
India
+91--33-25752610 (Phone)

HOME PAGE: http://www.isical.ac.in/~eru/amita.html

Somnath Chattopadhyay

Indian Statistical Institute, Kolkata ( email )

203 B.T. Road
Kolkata, West Bengal 700108
India

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